Service Agreement No. [ ]
(PJM Queue Position #__)
Schedules and Appendices attached hereto and incorporated herein, is entered into by and
between PJM Interconnection, L.L.C., the Regional Transmission Organization for the
PJM Region (hereinafter “Transmission Provider” or “PJM”),
______ (“Interconnection Customer” [OPTIONAL: or “[short
name”]]) and ____________ (“Interconnected Transmission Owner”
[OPTIONAL: or “[short name]”]). All capitalized terms herein shall have the meanings
set forth in the appended definitions of such terms as stated in Part I of the PJM Open
Access Transmission Tariff (“Tariff”). [Use as/when applicable: This ISA supersedes the
{insert details to identify the agreement
being superseded, such as whether it is an Interim Interconnection Service Agreement,
Interconnection Service Agreement, or Interconnection Agreement, the effective date of
the agreement, the service agreement number designation, and the FERC docket number,
if applicable, for the agreement being superseded.}]]
2.0 Authority. This ISA is entered into pursuant to Part VI of the Tariff. Interconnection
Customer has requested an Interconnection Service Agreement under the Tariff, and
Transmission Provider has determined that Interconnection Customer is eligible under the
Tariff to obtain this ISA. The standard terms and conditions for interconnection as set
forth in Appendix 2 to this ISA are hereby specifically incorporated as provisions of this
ISA. Transmission Provider, Interconnected Transmission Owner and Interconnection
Customer agree to and assume all of the rights and obligations of the Transmission
Provider, Interconnected Transmission Owner and Interconnection Customer,
respectively, as set forth in Appendix 2 to this ISA.
3.0 Customer Facility Specifications. Attached are Specifications for the Customer Facility
that Interconnection Customer proposes to interconnect with the Transmission System.
Interconnection Customer represents and warrants that, upon completion of construction
of such facilities, it will own or control the Customer Facility identified in section 1.0 of
the Specifications attached hereto and made a part hereof. In the event that
Interconnection Customer will not own the Customer Facility, Interconnection Customer
represents and warrants that it is authorized by the owner(s) thereof to enter into this ISA
and to represent such control.
4.0 Effective Date. Subject to any necessary regulatory acceptance, this ISA shall become
effective on the date it is executed by all Interconnection Parties, or, if the agreement is
filed with FERC unexecuted, upon the date specified by FERC. This ISA shall terminate
on such date as mutually agreed upon by the parties, unless earlier terminated in
accordance with the terms set forth in Appendix 2 to this ISA. The term of the ISA shall
be as provided in Section 1.3 of Appendix 2 to this ISA. Interconnection Service shall
commence as provided in Section 1.2 of Appendix 2 to this ISA.
5.0 Security. In accord with Section 212.4 of the Tariff, Interconnection Customer shall
provide the Transmission Provider (for the benefit of the Interconnected Transmission
Owner) with a letter of credit from an agreed provider or other form of security
reasonably acceptable to the Transmission Provider and that names the Transmission
Provider as beneficiary (“Security”) in the amount of $_______________. This amount
represents the sum of the estimated Costs, determined in accordance with Sections 212
and 217 of the Tariff, for which the Interconnection Customer will be responsible, less
any Costs already paid by Interconnection Customer. Interconnection Customer
acknowledges that its ultimate cost responsibility in accordance with Section 217 of the
Tariff will be based upon the actual Costs of the facilities described in the Specifications,
whether greater or lesser than the amount of the payment security provided under this
section.
[Include the following if Interconnection Customer requests deferral of the security as
provided for in Section 212.4(c) of the Tariff:
For any portion of the security that may be deferred in accordance with Section 212.4(c)
of the Tariff, and as requested by Interconnection Customer, Interconnection Customer
shall provide the security specified in this Section 5.0 within 120 days after the
Interconnection Customer executes this ISA, provided that Interconnection Customer
shall pay a deposit of at least $200,000 or 125% of the estimated costs that will be
incurred during the 120-day period, whichever is greater, to fund continued design work
and/or procurement activities, with $100,000 of such deposit being non-refundable.]
Should Interconnection Customer fail to provide security at the time the Interconnection
Customer executes this ISA, or, if deferred, by the end of the 120-day period, this ISA
shall be terminated.
6.0 Project Specific Milestones. In addition to the milestones stated in Section 212.5 of the
Tariff, as applicable, during the term of this ISA, Interconnection Customer shall ensure
that it meets each of the following development milestones:
[Specify Project Specific Milestones]
[As appropriate include the following standard Milestones, with any revisions necessary
for the project at hand:
6.1 Substantial Site work completed. On or before ___________________ Interconnection
Customer must demonstrate completion of at least 20% of project site construction. At
this time, Interconnection Customer must submit to Interconnected Transmission Owner
and Transmission Provider initial drawings, certified by a professional engineer, of the
Customer Interconnection Facilities.
to Interconnection Customer’s project site.
6.3 Commercial Operation. (i) On or before ____ __________, Interconnection Customer
must demonstrate commercial operation of __ generating units; (ii) On or before
_____________, Interconnection Customer must demonstrate commercial operation of
__ additional generating units. Demonstrating commercial operation includes achieving
Initial Operation in accordance with Section 1.4 of Appendix 2 to this ISA and making
commercial sales or use of energy, as well as, if applicable, obtaining capacity
qualification in accordance with the requirements of the Reliability Assurance
Agreement Among Load Serving Entities in the PJM Region.
[if a specific situation requires a CSA by a certain date then use the following:
Interconnection Construction Service Agreement. On or before ___________,
Interconnection Customer must have either (a) executed an Interconnection Construction
Service Agreement for Interconnection Facilities for which Interconnection Customer has
cost responsibility; (b) requested dispute resolution under Section 12 of the PJM Tariff,
or if concerning the Regional Transmission Expansion Plan, consistent with Schedule 5
of the Operating Agreement; or (c) requested that the Transmission Provider file the
Interconnection Construction Service Agreement unexecuted with the Commission.]
6.4 Within one (1) month following commercial operation of generating unit(s),
Interconnection Customer must provide certified documentation demonstrating that “as-
built” Customer Facility and Customer Interconnection Facilities are in accordance with
applicable PJM studies and agreements. Interconnection Customer must also provide
PJM with “as-built” electrical modeling data or confirm that previously submitted data
remains valid.
Interconnection Customer shall demonstrate the occurrence of each of the foregoing
milestones to Transmission Provider’s reasonable satisfaction. Transmission Provider
may reasonably extend any such milestone dates, in the event of delays that
Interconnection Customer (i) did not cause and (ii) could not have remedied through the
exercise of due diligence. The milestone dates stated in this ISA shall be deemed to be
extended coextensively with any suspension of work initiated by Interconnection
Customer in accordance with the Interconnection Construction Service Agreement.
7.0 Provision of Interconnection Service. Transmission Provider and Interconnected
Transmission Owner agree to provide for the interconnection to the Transmission System
in the PJM Region of Interconnection Customer’s Customer Facility identified in the
Specifications in accordance with Part IV and Part VI of the Tariff, the Operating
Agreement of PJM Interconnection, L.L.C. (“Operating Agreement”), and this ISA, as
they may be amended from time to time.
8.0 Assumption of Tariff Obligations. Interconnection Customer agrees to abide by all rules
and procedures pertaining to generation and transmission in the PJM Region, including
but not limited to the rules and procedures concerning the dispatch of generation or
scheduling transmission set forth in the Tariff, the Operating Agreement and the PJM
Manuals.
9.0 Facilities Study. In analyzing and preparing the [Facilities Study] [System Impact Study
{if a Facilities Study was not required}], and in designing and constructing the
Attachment Facilities, Local Upgrades and/or Network Upgrades described in the
Specifications attached to this ISA, Transmission Provider, the Interconnected
Transmission Owner(s), and any other subcontractors employed by Transmission
Provider have had to, and shall have to, rely on information provided by Interconnection
Customer and possibly by third parties and may not have control over the accuracy of
such information. Accordingly, NEITHER TRANSMISSION PROVIDER, THE
INTERCONNECTED TRANSMISSION OWNER(s), NOR ANY OTHER
SUBCONTRACTORS EMPLOYED BY TRANSMISSION PROVIDER OR
INTERCONNECTED TRANSMISSION OWNER MAKES ANY WARRANTIES,
EXPRESS OR IMPLIED, WHETHER ARISING BY OPERATION OF LAW, COURSE
OF PERFORMANCE OR DEALING, CUSTOM, USAGE IN THE TRADE OR
PROFESSION, OR OTHERWISE, INCLUDING WITHOUT LIMITATION IMPLIED
WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR
PURPOSE, WITH REGARD TO THE ACCURACY, CONTENT, OR CONCLUSIONS
OF THE FACILITIES STUDY OR THE SYSTEM IMPACT STUDY IF A FACILITIES
STUDY WAS NOT REQUIRED OR OF THE ATTACHMENT FACILITIES, THE
LOCAL UPGRADES AND/OR THE NETWORK UPGRADES, PROVIDED,
HOWEVER, that Transmission Provider warrants that the Transmission Owner
Interconnection Facilities and any Merchant Transmission Upgrades described in the
Specifications will be designed and constructed (to the extent that Interconnected
Transmission Owner is responsible for design and construction thereof) and operated in
accordance with Good Utility Practice, as such term is defined in the Operating
Agreement. Interconnection Customer acknowledges that it has not relied on any
representations or warranties not specifically set forth herein and that no such
representations or warranties have formed the basis of its bargain hereunder.
10.0 Construction of Transmission Owner Interconnection Facilities
10.1. Cost Responsibility. Interconnection Customer shall be responsible for and shall
pay upon demand all Costs associated with the interconnection of the Customer
Facility as specified in the Tariff. These Costs may include, but are not limited to,
an Attachment Facilities charge, a Local Upgrades charge, a Network Upgrades
charge and other charges. A description of the facilities required and an estimate
of the Costs of these facilities are included in Sections 3.0 and 4.0 of the
Specifications to this ISA.
10.2. Billing and Payments. Transmission Provider shall bill the Interconnection
Customer for the Costs associated with the facilities contemplated by this ISA,
estimates of which are set forth in the Specifications to this ISA, and the
Interconnection Customer shall pay such Costs, in accordance with Section 11 of
Appendix 2 to this ISA and the applicable Interconnection Construction Service
Agreement. Upon receipt of each of Interconnection Customer’s payments of
such bills, Transmission Provider shall reimburse the applicable Interconnected
Transmission Owner. Pursuant to Section 212.4 of the Tariff, Interconnection
Customer requests that Transmission Provider provide a quarterly cost
reconciliation:
______ Yes
______ No
10.3. Contract Option. In the event that the Interconnection Customer and
Interconnected Transmission Owner agree to utilize the Negotiated Contract
Option provided by the Interconnection Construction Service Agreement to
establish, subject to FERC acceptance, non-standard terms regarding cost
responsibility, payment, billing and/or financing, the terms of Sections 10.1
and/or 10.2 of this Section 10.0 shall be superseded to the extent required to
conform to such negotiated terms, as stated in a schedule attached to the parties’
Interconnection Construction Service Agreement relating to interconnection of the
Customer Facility.
10.4 In the event that the Interconnection Customer elects to construct some or all of
the Transmission Owner Interconnection Facilities under the Option to Build of
the Interconnection Construction Service Agreement, billing and payment for the
Costs associated with the facilities contemplated by this ISA shall relate only to
such portion of the Interconnection Facilities as the Interconnected Transmission
Owner is responsible for building.
11.0 Interconnection Specifications
11.1 Point of Interconnection. The Point of Interconnection shall be as identified on
the one-line diagram attached as Schedule B to this ISA.
11.2 List and Ownership of Interconnection Facilities. The Interconnection Facilities
to be constructed and ownership of the components thereof are identified in
Section 3.0 of the Specifications attached to this ISA.
11.3 Ownership and Location of Metering Equipment. The Metering Equipment to be
constructed, the capability of the Metering Equipment to be constructed, and the
ownership thereof, are identified on the attached Schedule C to this ISA.
11.4 Applicable Technical Standards. The Applicable Technical Requirements and
Standards that apply to the Customer Facility and the Interconnection Facilities
are identified in Schedule D to this ISA.
12.0 Power Factor Requirement.
Consistent with Section 4.7 of Appendix 2 to this ISA, the power factor requirement is as
follows:
[For Generation Interconnection Customers]
{The following language should be included for new large and small synchronous
generation facilities that will have the Tariff specified power factor. This section does
not apply if the Interconnection Request is for an incremental increase in generating
capability.}
The Interconnection Customer shall design its Customer Facility with the ability to
maintain a power factor of at least 0.95 leading to 0.90 lagging measured at the
[generator’s terminals] [Point of Interconnection].
{For all wind or non-synchronous generation facilities which have entered the New
Services Queue prior to May 1, 2015, include the appropriate alternative from the
language below. This section does not apply if the Interconnection Request is for an
incremental increase in generating capability.}
The result of the System Impact Study indicated that, for the safety and reliability of the
Transmission System, no power factor requirement is required for the [wind-powered]
[non-synchronous] Customer Facility.
{or}
The results of the System Impact Study require that, for the safety or reliability of the
Transmission System, the Generation Interconnection Customer shall design its [wind-
powered] [non-synchronous] Customer Facility with the ability to maintain a power
factor of at least 0.95 leading to 0.95 lagging measured at the Point of Interconnection.
{include the following language if the Interconnection Request is for an incremental
increase in capacity or energy output to a synchronized generation facility}
The existing __ MW portion of the Customer Facility shall retain its existing ability to
maintain a power factor of at least 0.95 leading to 0.90 lagging measured at the
[generator’s terminals] [Point of Interconnection].
The increase of ___ MW to the Customer Facility associated with this ISA shall be
designed with the ability to maintain a power factor of at least 1.0 (unity) to 0.90 lagging
measured at the [generator’s terminals] [Point of Interconnection].
{For new wind or non-synchronous generation facilities which have entered the New
Service Queue on or after May 1, 2015, and before November 1, 2016, the following
applies:}
The Generation Interconnection Customer shall design its [wind-powered] [non-
synchronous] Customer Facility with the ability to maintain a power factor of at least
0.95 leading to 0.95 lagging measured at the generator’s terminals.
{For new wind or non-synchronous generation facilities which have entered the New
Service Queue after November 1, 2016, the following applies:}
The Generation Interconnection Customer shall design its [wind-powered] [non-
synchronous] Customer Facility with the ability to maintain a power factor of at least
0.95 leading to 0.95 lagging measured at the high-side of the facility substation
transformers.
{For all wind or non-synchronous generation facilities that have entered the New
Services Queue prior to May 1, 2015, include the appropriate alternative from the
language below for Interconnection Requests for an incremental increase in capacity or
energy output to all wind or non- synchronized generation facility.}
The results of the System Impact Study indicate that, for the safety or reliability of the
Transmission System, no power factor requirement is necessary for the [existing
MW or the increase of MW associated with this ISA] [increase of MW
associated with this ISA, but that the existing MW of the Customer Facility must
retain its ability to retain a power factor of at least 0.95 leading to 0.95 lagging measured
at the Point of Interconnection] [existing MW of the Customer Facility but that the
increase of MW associated with this ISA must be designed with the ability to
maintain a power factor requirement of 1.0 (unity) to 0.90 lagging measured at the Point
of Interconnection.
{or}
The results of the System Impact Study indicate that, for the safety or reliability of the
Transmission System, (i) the existing ___ MW portion of the Customer Facility shall
retain its existing ability to maintain a power factor of at least 0.95 leading to 0.95
lagging measured at the Point of Interconnection and (ii) the increase of ___ MW to the
Customer Facility associated with this ISA shall be designed with the ability to maintain
a power factor of at least 1.0 (unity) to 0.95 lagging measured at the Point of
Interconnection.
{For all wind or non-synchronous generation facilities requesting an incremental increase
in capacity or energy output which have entered the New Services Queue on or after May
1, 2015, and before November 1, 2016, include the following requirements:}
{NOTE: This section does not apply to requests for an incremental increase in capacity
or energy output for wind or non-synchronous generation facilities which were
commercially operable or had entered the New Services Queue prior to May 1, 2015.}
The existing [wind-powered] [non-synchronous] __ MW portion of the Customer Facility
shall retain the ability to maintain a power factor of at least 0.95 leading to 0.95 lagging
measured at the generator’s terminals.
The increase of __ MW to the [wind-powered] [non-synchronous] Customer Facility
associated with this ISA shall be designed with the ability to maintain a power factor of at
least 0.95 leading to 0.95 lagging measured at the generator’s terminals.
{For all wind or non-synchronous generation facilities requesting an incremental increase
in capacity or energy output which have entered the New Services Queue after November
1, 2016, and were not commercially operable prior to November 1, 2016 include the
following requirements:}
The existing [wind-powered] [non-synchronous] __ MW portion of the Customer Facility
shall retain the ability to maintain a power factor of at least 0.95 leading to 0.95 lagging
measured at the high-side of the facility substation transformers.
The increase of __ MW to the [wind-powered] [non-synchronous] Customer Facility
associated with this ISA shall be designed with the ability to maintain a power factor of at
least 0.95 leading to 0.95 lagging measured at the high-side of the facility substation
transformers.
{For all wind or non-synchronous generation facilities requesting an incremental increase
in capacity or energy output which have entered the New Services Queue on or after
November 1, 2016, and were commercially operable prior to November 1, 2016, include
the following requirements:}
The result of the System Impact Study indicated that, for the safety and reliability of the
Transmission System, no power factor requirement is required for the [wind-powered]
[non-synchronous] Customer Facility.
{or}
The results of the System Impact Study require that, for the safety or reliability of the
Transmission System, the Generation Interconnection Customer shall design its [wind-
powered] [non-synchronous] Customer Facility with the ability to maintain a power
factor of at least 0.95 leading to 0.95 lagging measured at the high-side of the facility
substation transformers.
[For Transmission Interconnection Customers]
{The following language should be included only for new Merchant Transmission
Facilities}
Facilities and/ or Controllable A.C. Merchant Transmission Facilities, to maintain a
power factor at the Point of Interconnection of at least 0.95 leading and 0.95 lagging,
when such Customer Facility is operating at any level within its approved operating
range.
[Include section 12A.0 only when applicable, i.e., only for a facility for which Transmission
Provider and Interconnected Transmission Owner deem an RTU (or equivalent) to be
unnecessary]
12A.0 RTU. In accordance with Section 8.5.2 of Appendix 2 to this ISA, that provision’s
requirement for installation of a remote terminal unit or equivalent data collection and
transfer equipment is hereby waived for purposes of this ISA.
13.0 Charges. In accordance with Sections 10 and 11 of Appendix 2 to this ISA, the
Interconnection Customer shall pay to the Transmission Provider the charges applicable
after Initial Operation, as set forth in Schedule E to this ISA. Promptly after receipt of
such payments, the Transmission Provider shall forward such payments to the appropriate
Interconnected Transmission Owner.
14.0 Third Party Beneficiaries. No third party beneficiary rights are created under this ISA,
except, however, that, subject to modification of the payment terms stated in Section 10
of this ISA pursuant to the Negotiated Contract Option, payment obligations imposed on
Interconnection Customer under this ISA are agreed and acknowledged to be for the
benefit of the Interconnected Transmission Owner(s). Interconnection Customer
expressly agrees that the Interconnected Transmission Owner(s) shall be entitled to take
such legal recourse as it deems appropriate against Interconnection Customer for the
payment of any Costs or charges authorized under this ISA or the Tariff with respect to
Interconnection Service for which Interconnection Customer fails, in whole or in part, to
pay as provided in this ISA, the Tariff and/or the Operating Agreement.
15.0 Waiver. No waiver by either party of one or more defaults by the other in performance of
any of the provisions of this ISA shall operate or be construed as a waiver of any other or
further default or defaults, whether of a like or different character.
16.0 Amendment. This ISA or any part thereof, may not be amended, modified, or waived
other than by a written document signed by all parties hereto.
17.0 Construction With Other Parts Of The Tariff. This ISA shall not be construed as an
application for service under Part II or Part III of the Tariff.
18.0 Notices. Any notice or request made by either party regarding this ISA shall be made, in
accordance with the terms of Appendix 2 to this ISA, to the representatives of the other
party and as applicable, to the Interconnected Transmission Owner(s), as indicated
below:
_____________________________________
_____________________________________
19.0 Incorporation Of Other Documents. All portions of the Tariff and the Operating
Agreement pertinent to the subject matter of this ISA and not otherwise made a part
hereof are hereby incorporated herein and made a part hereof.
20.0 Addendum of Non-Standard Terms and Conditions for Interconnection Service. Subject
to FERC approval, the parties agree that the terms and conditions set forth in Schedule F
hereto are hereby incorporated herein by reference and be made a part of this ISA. In the
event of any conflict between a provision of Schedule F that FERC has accepted and any
provision of Appendix 2 to this ISA that relates to the same subject matter, the pertinent
provision of Schedule F shall control.
21.0 Addendum of Interconnection Customer’s Agreement to Conform with IRS Safe Harbor
Provisions for Non-Taxable Status. To the extent required, in accordance with Section
24.1 of Appendix 2 to this ISA, Schedule G to this ISA shall set forth the Interconnection
Customer’s agreement to conform with the IRS safe harbor provisions for non-taxable
status.
22.0 Addendum of Interconnection Requirements for all Wind or Non-synchronous
Generation Facilities. To the extent required, Schedule H to this ISA sets forth
interconnection requirements for a wind or non-synchronous generation facilities and is
hereby incorporated by reference and made a part of this ISA.
23.0 All interconnection parties agree to comply with all infrastructure security requirements
of the North American Electric Reliability Corporation.
IN WITNESS WHEREOF, Transmission Provider, Interconnection Customer and
Interconnected Transmission Owner have caused this ISA to be executed by their respective
authorized officials.
By:_______________________ ___________________________ ____________
By:_______________________ ___________________________ ____________
By:_______________________ ___________________________ ____________
(PJM Queue Position # ___)
1.0 Description of [generating unit(s)] [Merchant Transmission Facilities] (the Customer
Facility) to be interconnected with the Transmission System in the PJM Region:
a. Name of Customer Facility:
______________________________________________________________
______________________________________________________________
______________________________________________________________
______________________________________________________________
{The following language should be included only for generating units
For Generation Interconnection Customer:
{The following language applies when a Generation Interconnection Request involves an
increase of the capacity of an existing Generating Facility:
The stated size of the generating unit includes an increase in the Maximum Facility Output of the
generating unit of __ MW over Interconnection Customer’s previous interconnection. This
increase is a result of the Interconnection Request associated with this Interconnection Service
Agreement.}
{The following language should be included only for Merchant Transmission Facilities
For Transmission Interconnection Customer:
Nominal Rated Capability: __________MW}
______________________________________________________________
______________________________________________________________
______________________________________________________________
______________________________________________________________
2.1 Capacity Interconnection Rights: {Instructions: this section will not apply if the
Customer Facility is exclusively an Energy Resource and thus is granted no CIRs;
see alternate section 2.1 below}
Pursuant to and subject to the applicable terms of the Tariff, the Interconnection
Customer shall have Capacity Interconnection Rights at the Point(s) of
Interconnection specified in this Interconnection Service Agreement in the
amount of MW. {Instructions: this number is the total of the Capacity
Interconnection Rights that are granted as a result of the Interconnection Request,
plus any prior Capacity Interconnection Rights}
{OR: Instructions: include the following language when the projected Initial Operation is
in advance of the study year used for the System Impact Study and Capacity
Interconnection Rights are only interim until the study year:}
Pursuant to and subject to the applicable terms of the Tariff, the Interconnection
Customer shall have Capacity Interconnection Rights at the Point(s) of
Interconnection specified in this Interconnection Service Agreement in the
amount of ___MW commencing _ _. During the time period from the
effective date of this ISA until ___________ (the “interim time period”), the
Interconnection Customer may be awarded interim Capacity Interconnection
Rights in the amount not to exceed _____MW. The availability and amount of
such interim Capacity Interconnection Rights shall be dependent upon completion
_______________.
{OR: Instructions: include the following language when there are a combination of
previously awarded CIRs and interim CIRs that have a termination date or event:}
Pursuant to and subject to the applicable terms of the Tariff, the Interconnection
Customer shall have Capacity Interconnection Rights at the Point(s) of
Interconnection specified in this Interconnection Service Agreement in the
amount of ___ MW commencing ____ {e.g., June 1, 2018}. From the effective
date of this ISA until _____ {e.g., May 31, 2018} (the “interim time period”), in
addition to the _____ MW of Capacity Interconnection Rights the Interconnection
Customer had at the same Point of Interconnection prior to its Interconnection
Request associated with this ISA, the Interconnection Customer also may be
awarded interim Capacity Interconnection Rights in an amount not to exceed
____ MW. Accordingly, during the interim time period, the Interconnection
Customer shall have ____ MW of previously awarded Capacity Interconnection
Rights and may be awarded interim Capacity Interconnection Rights in an amount
not to exceed _____ MW. The availability and amount of such interim Capacity
Interconnection Rights shall be dependent upon completion and results of an
interim deliverability study. Any interim Capacity Interconnection Rights
awarded during the interim time period shall terminate on _____{e.g., May 31,
2018}.
{OR: Instruction: include the following language to the extent applicable for
interconnection of additional generation at an existing Generating Facility:}
The amount of Capacity Interconnection Rights specified above (____ MW)
includes ___ MW of Capacity Interconnection Rights that the Interconnection
Customer had at the same Point(s) of Interconnection prior to its Interconnection
Request associated with this Interconnection Service Agreement, and ___MW of
Capacity Interconnection Rights granted as a result of such Interconnection
Request.
{OR: Instructions: include the following language when the CIRs are only interim and
have a termination date or event:}
Interconnection Customer shall have __ MW of Capacity Interconnection Rights
for the time period from ___ to ____ . These Capacity Interconnection Rights are
interim and will terminate upon {Instructions: explain circumstances -- e.g.
interim agreement; completion of another facility, etc.}
2.1a To the extent that any portion of the Customer Facility described in section 1.0 is
not a Capacity Resource with Capacity Interconnection Rights, such portion of the
Customer Facility shall be an Energy Resource. PJM reserves the right to limit
total injections to the Maximum Facility Output in the event reliability would be
affected by output greater than such quantity.
{Instructions: this version of section 2.1 will be used in lieu of section 2.1 above when a
Generating Facility will be an Energy Resource and therefore will not be granted any
CIRs:}
[2.1 The generating unit(s) described in section 1.0 shall be an Energy
Resource. Pursuant to this Interconnection Service Agreement, the generating
unit will be permitted to inject ___ MW (nominal) into the system. PJM reserves
the right to limit injections to this quantity in the event reliability would be
affected by output greater than such quantity. ]
[for Transmission Interconnection Customers]
2.1 Transmission Injection Rights: [applicable only to Merchant D.C. Transmission
Facilities and/or Controllable A.C. Merchant Transmission Facilities that
interconnect with a control area outside PJM]
Pursuant to Section 232 of the Tariff, Interconnection Customer shall have
Transmission Injection Rights at each indicated Point of Interconnection in the
following quantity(ies):
Transmission Facilities and/or Controllable A.C. Merchant Transmission
Facilities that interconnect with a control area outside PJM]
Pursuant to Section 232 of the Tariff, Interconnection Customer shall have
Transmission Withdrawal Rights at each indicated Point of Interconnection in the
following quantity(ies):
[Include Section 2.2A only if customer is interconnecting Controllable A.C. Merchant
Transmission Facilities]
2.2A Interconnection Customer is interconnecting Controllable A.C. Merchant
Transmission Facilities as defined in the appended Section 1.6B of the Tariff, and
has elected, pursuant to the appended Section 41.1 of the Tariff, to receive
Transmission Injection Rights and Transmission Withdrawal Rights in lieu of the
other applicable rights for which it may be eligible under Subpart C of Part VI of
the Tariff. Accordingly, Interconnection Customer hereby agrees that the
Transmission Injection Rights and Transmission Withdrawal Rights awarded to it
pursuant to the Tariff and this ISA are, and throughout the duration of this ISA
shall be, conditioned on Interconnection Customer’s continuous operation of its
Controllable A.C. Merchant Transmission Facilities in a controllable manner, i.e.,
in a manner effectively the same as operation of D.C. transmission facilities.
2.3 Incremental Deliverability Rights:
Pursuant to Section 235 of the Tariff, Interconnection Customer shall have
Incremental Deliverability Rights at each indicated Point of Interconnection in the
following quantity(ies):
2.4 Incremental Available Transfer Capability Revenue Rights:
Pursuant to Section 233 of the Tariff, Interconnection Customer shall have
Incremental Available Transfer Capability Revenue Rights at each indicated Point
of Interconnection in the following quantities:
2.5 Incremental Auction Revenue Rights:
Pursuant to Section 231 of the Tariff, Interconnection Customer shall have
Incremental Auction Revenue Rights in the following quantities:
2.6 Incremental Capacity Transfer Rights:
Pursuant to Section 234 of the Tariff, Interconnection Customer shall have
Incremental Capacity Transfer Rights between the following associated source(s)
and sink(s) in the indicated quantities:
3.0 Construction Responsibility and Ownership of Interconnection Facilities
a. Interconnection Customer.
shall own, the following Interconnection Facilities:
[Specify Facilities To Be Constructed]
(2) In the event that, in accordance with the Interconnection Construction Service
Agreement, Interconnection Customer has exercised the Option to Build, it is
hereby permitted to build in accordance with and subject to the conditions and
limitations set forth in that Section, the following portions of the Transmission
Owner Interconnection Facilities which constitute or are part of the Customer
Facility:
[Specify Facilities To Be Constructed]
Ownership of the facilities built by Interconnection Customer pursuant to the
Option to Build shall be as provided in the Interconnection Construction Service
Agreement.
Owner if more than one Interconnected Transmission Owner}
[Specify Facilities To Be Constructed and Owned]
c. [if applicable, include the following][Name of any additional Transmission
Owner constructing facilities with which Interconnection Customer and
Transmission Provider will also execute an Interconnection Construction Service
Agreement]
[Specify Facilities To Be Constructed and Owned]
d. [if applicable] Additional Contingent Facilities which must be completed prior to
Commercial Operation of the Generating Facility
[Specify Facilities To Be Constructed and Owned]
4.0 Subject to modification pursuant to the Negotiated Contract Option and/or the Option to
Build under the Interconnection Construction Service Agreement, Interconnection
Customer shall be subject to the estimated charges detailed below, which shall be billed
and paid in accordance with Appendix 2, Section 11 of this ISA and the applicable
Interconnection Construction Service Agreement.
4.1 Attachment Facilities Charge: $____________
4.2 Network Upgrades Charge: $__________
Owner responsibilities]
4.4 Other Charges: $__________
Owner responsibilities]
$ Total
Direct Connection Network Upgrades
plus $ Estimated cost of the work (for the first three months after construction
commences in earnest) on the required Attachment Facilities, Direct Connection Local
Upgrades, and Direct Connection Network Upgrades
plus $ Option to Build Security for Transmission Owner Attachment Facilities
and Direct Connection Network Upgrades (including Cancellation Costs)
{Use if Interconnected Transmission Owner work will be completed in the first
quarter:
$ Costs included for three-month work completion estimate Security x 0.25}
$ Total Security required with ISA (Instructions: this value should be in
Section 5.0 of this ISA)
less $ Costs already paid by Interconnection Customer
$ Total Security {Instructions: if the resultant is negative, use: reduction
with this ISA; if the resultant is zero or positive use: required with ISA}
APPENDICES:
INTERCONNECTIONS
SCHEDULES:
SCHEDULE B - SINGLE-LINE DIAGRAM
STANDARDS
SCHEDULE F - SCHEDULE OF NON-STANDARD TERMS & CONDITIONS
SCHEDULE G - INTERCONNECTION CUSTOMER’S AGREEMENT TO
CONFORM WITH IRS SAFE HARBOR PROVISIONS FOR NON-TAXABLE
STATUS
GENERATION FACILITY
STORAGE RESOURCE
INTERCONNECTION SERVICE
BELOW FULL ELECTRICAL GENERATING CAPABILITY
APPENDIX 1
From the PJM Tariff accepted for filing by the Commission
as of the effective date of this agreement
Unless the context otherwise specifies or requires, capitalized terms used in this Agreement shall
have the respective meanings set forth below. Unless otherwise specified, all references herein
to sections, Schedules or Appendices are to sections, Schedules or Appendices of this
Agreement.
“Abnormal Condition” shall mean any condition on the Interconnection Facilities which,
determined in accordance with Good Utility Practice, is: (i) outside normal operating parameters
such that facilities are operating outside their normal ratings or that reasonable operating limits
have been exceeded; and (ii) could reasonably be expected to materially and adversely affect the
safe and reliable operation of the Interconnection Facilities; but which, in any case, could
reasonably be expected to result in an Emergency Condition. Any condition or situation that
results from lack of sufficient generating capacity to meet load requirements or that results solely
from economic conditions shall not, standing alone, constitute an Abnormal Condition.
Affected System:
“Affected System” shall mean an electric system other than the Transmission Provider’s
Transmission System that may be affected by a proposed interconnection or on which a proposed
interconnection or addition of facilities or upgrades may require modifications or upgrades to the
Transmission System.
Affiliate:
”Affiliate” shall mean any two or more entities, one of which Controls the other or that are under
common Control. “Control,” as that term is used in this definition, shall mean the possession,
directly or indirectly, of the power to direct the management or policies of an entity. Ownership
of publicly-traded equity securities of another entity shall not result in Control or affiliation for
purposes of the Tariff or Operating Agreement if the securities are held as an investment, the
holder owns (in its name or via intermediaries) less than 10 percent (10%) of the outstanding
securities of the entity, the holder does not have representation on the entity’s board of directors
(or equivalent managing entity) or vice versa, and the holder does not in fact exercise influence
over day-to-day management decisions. Unless the contrary is demonstrated to the satisfaction
of the Members Committee, Control shall be presumed to arise from the ownership of or the
power to vote, directly or indirectly, ten percent or more of the voting securities of such entity.
Ancillary Services:
“Ancillary Services” shall mean those services that are necessary to support the transmission of
capacity and energy from resources to loads while maintaining reliable operation of the
Transmission Provider’s Transmission System in accordance with Good Utility Practice.
Applicable Laws and Regulations:
“Applicable Laws and Regulations” shall mean all duly promulgated applicable federal, State
and local laws, regulations, rules, ordinances, codes, decrees, judgments, directives, or judicial or
administrative orders, permits and other duly authorized actions of any Governmental Authority
having jurisdiction over the relevant parties, their respective facilities, and/or the respective
services they provide.
Applicable Regional Entity:
“Applicable Regional Entity” shall mean the Regional Entity for the region in which a Network
Customer, Transmission Customer, New Service Customer, or Transmission Owner operates.
Applicable Standards:
“Applicable Standards” shall mean the requirements and guidelines of NERC, the Applicable
Regional Entity, and the Control Area in which the Customer Facility is electrically located; the
PJM Manuals; and Applicable Technical Requirements and Standards.
Applicable Technical Requirements and Standards:
“Applicable Technical Requirements and Standards” shall mean those certain technical
requirements and standards applicable to interconnections of generation and/or transmission
facilities with the facilities of an Interconnected Transmission Owner or, as the case may be and
to the extent applicable, of an Electric Distributor, as published by Transmission Provider in a
PJM Manual provided, however, that, with respect to any generation facilities with maximum
generating capacity of 2 MW or less (synchronous) or 5 MW or less (inverter-based) for which
the Interconnection Customer executes a Construction Service Agreement or Interconnection
Service Agreement on or after March 19, 2005, “Applicable Technical Requirements and
Standards” shall refer to the “PJM Small Generator Interconnection Applicable Technical
Requirements and Standards.” All Applicable Technical Requirements and Standards shall be
publicly available through postings on Transmission Provider’s internet website.
Attachment Facilities:
“Attachment Facilities” shall mean the facilities necessary to physically connect a Customer
Facility to the Transmission System or interconnected distribution facilities.
Behind The Meter Generation:
“Behind The Meter Generation” shall refer to a generation unit that delivers energy to load
without using the Transmission System or any distribution facilities (unless the entity that owns
or leases the distribution facilities has consented to such use of the distribution facilities and such
consent has been demonstrated to the satisfaction of the Office of the Interconnection); provided,
however, that Behind The Meter Generation does not include (i) at any time, any portion of such
generating unit’s capacity that is designated as a Generation Capacity Resource; or (ii) in an
hour, any portion of the output of such generating unit that is sold to another entity for
consumption at another electrical location or into the PJM Interchange Energy Market.
Breach:
“Breach” shall mean the failure of a party to perform or observe any material term or condition
of Tariff, Part IV or Tariff, Part VI, or any agreement entered into thereunder as described in the
relevant provisions of such agreement.
Breaching Party:
“Breaching Party” shall mean a party that is in Breach of Tariff, Part IV or Tariff, Part VI and/or
an agreement entered into thereunder.
Business Day:
“Business Day” shall mean a day in which the Federal Reserve System is open for business and
is not a scheduled PJM holiday.
Cancellation Costs:
“Cancellation Costs” shall mean costs and liabilities incurred in connection with: (a) cancellation
of supplier and contractor written orders and agreements entered into to design, construct and
install Attachment Facilities, Direct Assignment Facilities and/or Customer-Funded Upgrades,
and/or (b) completion of some or all of the required Attachment Facilities, Direct Assignment
Facilities and/or Customer-Funded Upgrades, or specific unfinished portions and/or removal of
any or all of such facilities which have been installed, to the extent required for the Transmission
Provider and/or Transmission Owner(s) to perform their respective obligations under Tariff, Part
IV and/or Part VI.
“Capacity” shall mean the installed capacity requirement of the Reliability Assurance Agreement
or similar such requirements as may be established.
Capacity Interconnection Rights:
“Capacity Interconnection Rights” shall mean the rights to input generation as a Generation
Capacity Resource into the Transmission System at the Point of Interconnection where the
generating facilities connect to the Transmission System.
Capacity Resource:
“Capacity Resource” shall have the meaning provided in the Reliability Assurance Agreement.
Commencement Date:
“Commencement Date” shall mean the date on which Interconnection Service commences in
accordance with an Interconnection Service Agreement.
Confidential Information:
of a plan, specification, pattern, procedure, design, device, list, concept, policy, or compilation
relating to the present or planned business of a New Service Customer, Transmission Owner, or
other Interconnection Party or Construction Party, which is designated as confidential by the
party supplying the information, whether conveyed verbally, electronically, in writing, through
inspection, or otherwise, and shall include, without limitation, all information relating to the
producing party’s technology, research and development, business affairs and pricing, and any
information supplied by any New Service Customer, Transmission Owner, or other
Interconnection Party or Construction Party to another such party prior to the execution of an
Interconnection Service Agreement or a Construction Service Agreement.
Consolidated Transmission Owners Agreement, PJM Transmission Owners Agreement or
Transmission Owners Agreement:
“Transmission Owners Agreement” shall mean the certain Consolidated Transmission Owners
Agreement dated as of December 15, 2005, by and among the Transmission Owners and by and
between the Transmission Owners and PJM Interconnection, L.L.C. on file with the
Commission, as amended from time to time.
Constructing Entity:
“Constructing Entity” shall mean either the Transmission Owner or the New Services Customer,
depending on which entity has the construction responsibility pursuant to Tariff, Part VI and the
applicable Construction Service Agreement; this term shall also be used to refer to an
Interconnection Customer with respect to the construction of the Customer Interconnection
Facilities.
Construction Party:
“Construction Party” shall mean a party to a Construction Service Agreement. “Construction
Parties” shall mean all of the Parties to a Construction Service Agreement.
Construction Service Agreement:
Agreement or an Upgrade Construction Service Agreement.
Contingent Facilities:
“Contingent Facilities” shall mean those unbuilt Interconnection Facilities and Network
Upgrades upon which the Interconnection Request’s costs, timing, and study findings are
dependent and, if delayed or not built, could cause a need for restudies of the Interconnection
Request or a reassessment of the Interconnection Facilities and/or Network Upgrades and/or
costs and timing.
Control Area:
“Control Area” shall mean an electric power system or combination of electric power systems
bounded by interconnection metering and telemetry to which a common automatic generation
control scheme is applied in order to:
(1) match the power output of the generators within the electric power system(s) and
energy purchased from entities outside the electric power system(s), with the load within the
electric power system(s);
(2) maintain scheduled interchange with other Control Areas, within the limits of
Good Utility Practice;
(3) maintain the frequency of the electric power system(s) within reasonable limits in
accordance with Good Utility Practice; and
(4) provide sufficient generating capacity to maintain operating reserves in
accordance with Good Utility Practice.
Controllable A.C. Merchant Transmission Facilities:
“Controllable A.C. Merchant Transmission Facilities” shall mean transmission facilities that (1)
employ technology which Transmission Provider reviews and verifies will permit control of the
amount and/or direction of power flow on such facilities to such extent as to effectively enable
the controllable facilities to be operated as if they were direct current transmission facilities, and
(2) that are interconnected with the Transmission System pursuant to Tariff, Part IV and Part VI.
Costs:
As used in Tariff, Part IV, Part VI and related attachments, “Costs” shall mean costs and
expenses, as estimated or calculated, as applicable, including, but not limited to, capital
expenditures, if applicable, and overhead, return, and the costs of financing and taxes and any
Incidental Expenses.
Customer Facility:
“Customer Facility” shall mean Generation Facilities or Merchant Transmission Facilities
interconnected with or added to the Transmission System pursuant to an Interconnection Request
under Subpart A of Tariff, Part IV.
Customer Interconnection Facilities:
controlled, operated and maintained by Interconnection Customer on Interconnection Customer’s
side of the Point of Interconnection identified in the appropriate appendices to the
Interconnection Service Agreement and to the Interconnection Construction Service Agreement,
including any modifications, additions, or upgrades made to such facilities and equipment, that
are necessary to physically and electrically interconnect the Customer Facility with the
Transmission System.
As used in the Interconnection Service Agreement and Construction Service Agreement,
“Default” shall mean the failure of a Breaching Party to cure its Breach in accordance with the
applicable provisions of an Interconnection Service Agreement or Construction Service
Agreement.
Emergency Condition:
“Emergency Condition” shall mean a condition or situation (i) that in the judgment of any
Interconnection Party is imminently likely to endanger life or property; or (ii) that in the
judgment of the Interconnected Transmission Owner or Transmission Provider is imminently
likely (as determined in a non-discriminatory manner) to cause a material adverse effect on the
security of, or damage to, the Transmission System, the Interconnection Facilities, or the
transmission systems or distribution systems to which the Transmission System is directly or
indirectly connected; or (iii) that in the judgment of Interconnection Customer is imminently
likely (as determined in a non-discriminatory manner) to cause damage to the Customer Facility
or to the Customer Interconnection Facilities. System restoration and black start shall be
considered Emergency Conditions, provided that a Generation Interconnection Customer is not
obligated by an Interconnection Service Agreement to possess black start capability. Any
condition or situation that results from lack of sufficient generating capacity to meet load
requirements or that results solely from economic conditions shall not constitute an Emergency
Condition, unless one or more of the enumerated conditions or situations identified in this
definition also exists.
Energy Resource:
“Energy Resource” shall mean a Generating Facility that is not a Capacity Resource.
Energy Storage Resource:
“Energy Storage Resource” shall mean a resource capable of receiving electric energy from the
grid and storing it for later injection to the grid that participates in the PJM Energy, Capacity
and/or Ancillary Services markets as a Market Participant.
Facilities Study:
“Facilities Study” shall be an engineering study conducted by the Transmission Provider (in
coordination with the affected Transmission Owner(s)) to: (1) determine the required
modifications to the Transmission Provider’s Transmission System necessary to implement the
conclusions of the System Impact Study; and (2) complete any additional studies or analyses
documented in the System Impact Study or required by PJM Manuals, and determine the
required modifications to the Transmission Provider’s Transmission System based on the
conclusions of such additional studies. The Facilities Study shall include the cost and scheduled
completion date for such modifications, that will be required to provide the requested
transmission service or to accommodate a New Service Request. As used in the Interconnection
Service Agreement or Construction Service Agreement, Facilities Study shall mean that certain
Facilities Study conducted by Transmission Provider (or at its direction) to determine the design
and specification of the Customer Funded Upgrades necessary to accommodate the New Service
Customer’s New Service Request in accordance with Tariff, Part VI, section 207.
Federal Power Act:
“Federal Power Act” shall mean the Federal Power Act, as amended, 16 U.S.C. §§ 791a, et seq.
FERC or Commission:
“FERC” or “Commission” shall mean the Federal Energy Regulatory Commission or any
successor federal agency, commission or department exercising jurisdiction over the Tariff,
Operating Agreement and Reliability Assurance Agreement.
Generating Facilities:
“Generating Facilities” shall mean Interconnection Customer’s device for the production and/or
storage for later injection of electricity identified in the Interconnection Request, but shall not
include the Interconnection Customer’s Interconnection Facilities.
Generation Interconnection Customer:
“Generation Interconnection Customer” shall mean an entity that submits an Interconnection
Request to interconnect a new generation facility or to increase the capacity of an existing
generation facility interconnected with the Transmission System in the PJM Region.
Generation Interconnection Request:
“Generation Interconnection Request” shall mean a request by a Generation Interconnection
Customer pursuant to Tariff, Part IV, subpart A, to interconnect a generating unit with the
Transmission System or to increase the capacity of a generating unit interconnected with the
Transmission System in the PJM Region.
Good Utility Practice:
“Good Utility Practice” shall mean any of the practices, methods and acts engaged in or
approved by a significant portion of the electric utility industry during the relevant time period,
or any of the practices, methods and acts which, in the exercise of reasonable judgment in light
of the facts known at the time the decision was made, could have been expected to accomplish
the desired result at a reasonable cost consistent with good business practices, reliability, safety
and expedition. Good Utility Practice is not intended to be limited to the optimum practice,
method, or act to the exclusion of all others, but rather is intended to include acceptable
practices, methods, or acts generally accepted in the region; including those practices required by
Federal Power Act, section 215(a)(4).
Governmental Authority:
“Governmental Authority” shall mean any federal, state, local or other governmental, regulatory
or administrative agency, court, commission, department, board, or other governmental
subdivision, legislature, rulemaking board, tribunal, arbitrating body, or other governmental
authority having jurisdiction over any Interconnection Party or Construction Party or regarding
any matter relating to an Interconnection Service Agreement or Construction Service Agreement,
as applicable.
Hazardous Substances:
“Hazardous Substance” shall mean any chemicals, materials or substances defined as or included
in the definition of “hazardous substances,” “hazardous wastes,” “hazardous materials,”
“hazardous constituents,” “restricted hazardous materials,” “extremely hazardous substances,”
“toxic substances,” “radioactive substances,” “contaminants,” “pollutants,” “toxic pollutants” or
words of similar meaning and regulatory effect under any applicable Environmental Law, or any
other chemical, material or substance, exposure to which is prohibited, limited or regulated by
any applicable Environmental Law.
Incremental Auction Revenue Rights:
“Incremental Auction Revenue Rights” shall mean the additional Auction Revenue Rights, not
previously feasible, created by the addition of Incremental Rights-Eligible Required
Transmission Enhancements, Merchant Transmission Facilities, or of one or more Customer-
Funded Upgrades.
“Incremental Available Transfer Capability Revenue Rights” shall mean the rights to revenues
that are derived from incremental Available Transfer Capability created by the addition of
Merchant Transmission Facilities or of one of more Customer-Funded Upgrades.
Incremental Capacity Transfer Right:
“Incremental Capacity Transfer Right” shall mean a Capacity Transfer Right allocated to a
Generation Interconnection Customer or Transmission Interconnection Customer obligated to
fund a transmission facility or upgrade, to the extent such upgrade or facility increases the
transmission import capability into a Locational Deliverability Area, or a Capacity Transfer
Right allocated to a Responsible Customer in accordance with Tariff, Schedule 12A.
Incremental Deliverability Rights (IDRs):
“Incremental Deliverability Rights” or “IDRs” shall mean the rights to the incremental ability,
resulting from the addition of Merchant Transmission Facilities, to inject energy and capacity at
a point on the Transmission System, such that the injection satisfies the deliverability
requirements of a Capacity Resource. Incremental Deliverability Rights may be obtained by a
generator or a Generation Interconnection Customer, pursuant to an IDR Transfer Agreement, to
satisfy, in part, the deliverability requirements necessary to obtain Capacity Interconnection
Rights.
Initial Operation:
“Initial Operation” shall mean the commencement of operation of the Customer Facility and
Customer Interconnection Facilities after satisfaction of the conditions of Tariff, Attachment O-
Appendix 2, section 1.4 (an Interconnection Service Agreement).
Interconnected Entity:
“Interconnected Entity” shall mean either the Interconnection Customer or the Interconnected
Transmission Owner; Interconnected Entities shall mean both of them.
Interconnected Transmission Owner:
“Interconnected Transmission Owner” shall mean the Transmission Owner to whose
transmission facilities or distribution facilities Customer Interconnection Facilities are, or as the
case may be, a Customer Facility is, being directly connected. When used in an Interconnection
Construction Service Agreement, the term may refer to a Transmission Owner whose facilities
must be upgraded pursuant to the Facilities Study, but whose facilities are not directly
interconnected with those of the Interconnection Customer.
Interconnection Construction Service Agreement:
Interconnection Customer, Interconnected Transmission Owner and the Transmission Provider
pursuant to Tariff, Part VI, Subpart B and in the form set forth in Tariff, Attachment P, relating
to construction of Attachment Facilities, Network Upgrades, and/or Local Upgrades and
coordination of the construction and interconnection of an associated Customer Facility. A
separate Interconnection Construction Service Agreement will be executed with each
Transmission Owner that is responsible for construction of any Attachment Facilities, Network
Upgrades, or Local Upgrades associated with interconnection of a Customer Facility.
Interconnection Customer:
Transmission Interconnection Customer.
the Customer Interconnection Facilities.
Interconnected Transmission Owner. Interconnection Parties shall mean all of them.
Interconnection Request:
Interconnection Request and/or an IDR Transfer Agreement.
Interconnection Service:
“Interconnection Service” shall mean the physical and electrical interconnection of the Customer
Facility with the Transmission System pursuant to the terms of Tariff, Part IV and Tariff, Part VI
and the Interconnection Service Agreement entered into pursuant thereto by Interconnection
Customer, the Interconnected Transmission Owner and Transmission Provider.
Interconnection Service Agreement:
“Interconnection Service Agreement” shall mean an agreement among the Transmission
Provider, an Interconnection Customer and an Interconnected Transmission Owner regarding
interconnection under Tariff, Part IV and Tariff, Part VI.
List of Approved Contractors:
“List of Approved Contractors” shall mean a list developed by each Transmission Owner and
published in a PJM Manual of (a) contractors that the Transmission Owner considers to be
qualified to install or construct new facilities and/or upgrades or modifications to existing
facilities on the Transmission Owner’s system, provided that such contractors may include, but
need not be limited to, contractors that, in addition to providing construction services, also
provide design and/or other construction-related services, and (b) manufacturers or vendors of
major transmission-related equipment (e.g., high-voltage transformers, transmission line, circuit
breakers) whose products the Transmission Owner considers acceptable for installation and use
on its system.
Load Serving Entity (LSE):
“Load Serving Entity” or “LSE” shall have the meaning specified in the Reliability Assurance
Agreement.
Local Upgrades:
“Local Upgrades” shall mean modifications or additions of facilities to abate any local thermal
loading, voltage, short circuit, stability or similar engineering problem caused by the
interconnection and delivery of generation to the Transmission System. Local Upgrades shall
include:
(i) Direct Connection Local Upgrades which are Local Upgrades that only serve the
Customer Interconnection Facility and have no impact or potential impact on the Transmission
System until the final tie-in is complete; and
(ii) Non-Direct Connection Local Upgrades which are parallel flow Local Upgrades that
are not Direct Connection Local Upgrades.
Material Modification:
“Material Modification” shall mean any modification to an Interconnection Request that has a
material adverse effect on the cost or timing of Interconnection Studies related to, or any
Network Upgrades or Local Upgrades needed to accommodate, any Interconnection Request
with a later Queue Position.
Maximum Facility Output:
“Maximum Facility Output” shall mean the maximum (not nominal) net electrical power output
in megawatts, specified in the Interconnection Service Agreement, after supply of any parasitic
or host facility loads, that a Generation Interconnection Customer’s Customer Facility is
expected to produce, provided that the specified Maximum Facility Output shall not exceed the
output of the proposed Customer Facility that Transmission Provider utilized in the System
Impact Study.
Maximum State of Charge:
“Maximum State of Charge” shall mean the maximum State of Charge that should not be
exceeded, measured in units of megawatt-hours.
Merchant A.C. Transmission Facilities:
alternating current (A.C.) transmission facilities, other than those that are Controllable A.C.
Merchant Transmission Facilities.
“Merchant D.C. Transmission Facilities” shall mean direct current (D.C.) transmission facilities
that are interconnected with the Transmission System pursuant to Tariff, Part IV and Tariff, Part
VI.
“Merchant Network Upgrades” shall mean additions to, or modifications or replacements of,
physical facilities of the Interconnected Transmission Owner that, on the date of the pertinent
Transmission Interconnection Customer’s Upgrade Request, are part of the Transmission System
or are included in the Regional Transmission Expansion Plan.
Merchant Transmission Facilities:
“Merchant Transmission Facilities” shall mean A.C. or D.C. transmission facilities that are
interconnected with or added to the Transmission System pursuant to Tariff, Part IV and Tariff,
Part VI and that are so identified in Tariff, Attachment T, provided, however, that Merchant
Transmission Facilities shall not include (i) any Customer Interconnection Facilities, (ii) any
physical facilities of the Transmission System that were in existence on or before March 20,
2003 ; (iii) any expansions or enhancements of the Transmission System that are not identified as
Merchant Transmission Facilities in the Regional Transmission Expansion Plan and Tariff,
Attachment T, or (iv) any transmission facilities that are included in the rate base of a public
utility and on which a regulated return is earned.
Merchant Transmission Provider:
“Merchant Transmission Provider” shall mean an Interconnection Customer that (1) owns,
controls, or controls the rights to use the transmission capability of, Merchant D.C. Transmission
Facilities and/or Controllable A.C. Merchant Transmission Facilities that connect the
Transmission System with another control area, (2) has elected to receive Transmission Injection
Rights and Transmission Withdrawal Rights associated with such facility pursuant to Tariff, Part
IV, section 36, and (3) makes (or will make) the transmission capability of such facilities
available for use by third parties under terms and conditions approved by the Commission and
stated in the Tariff, consistent with Tariff, Part IV, section 38.
Metering Equipment:
“Metering Equipment” shall mean all metering equipment installed at the metering points
designated in the appropriate appendix to an Interconnection Service Agreement.
Minimum State of Charge:
“Minimum State of Charge” shall mean the minimum State of Charge that should be maintained
in units of megawatt-hours.
NERC:
“NERC” shall mean the North American Electric Reliability Corporation or any successor
thereto.
“Network Upgrades” shall mean modifications or additions to transmission-related facilities that
are integrated with and support the Transmission Provider’s overall Transmission System for the
general benefit of all users of such Transmission System. Network Upgrades shall include:
(i) Direct Connection Network Upgrades which are Network Upgrades that are not part
of an Affected System; only serve the Customer Interconnection Facility; and have no impact or
potential impact on the Transmission System until the final tie-in is complete. Both
Transmission Provider and Interconnection Customer must agree as to what constitutes Direct
Connection Network Upgrades and identify them in the Interconnection Construction Service
Agreement, Schedule D. If the Transmission Provider and Interconnection Customer disagree
about whether a particular Network Upgrade is a Direct Connection Network Upgrade, the
Transmission Provider must provide the Interconnection Customer a written technical
explanation outlining why the Transmission Provider does not consider the Network Upgrade to
be a Direcct Connection Network Upgrade within 15 days of its determination.
(ii) Non-Direct Connection Network Upgrades which are parallel flow Network
Upgrades that are not Direct Connection Network Upgrades.
New Service Request:
“New Service Request” shall mean an Interconnection Request, a Completed Application, or an
Upgrade Request.
“New Service Queue” shall mean all Interconnection Requests, Completed Applications, and
Upgrade Requests that are received within each six-month period ending on April 30 and
October 31 of each year shall collectively comprise a New Services Queue.
Nominal Rated Capability:
“Nominal Rated Capability” shall mean the nominal maximum rated capability in megawatts of
a Transmission Interconnection Customer’s Customer Facility or the nominal increase in
transmission capability in megawatts of the Transmission System resulting from the
interconnection or addition of a Transmission Interconnection Customer’s Customer Facility, as
determined in accordance with pertinent Applicable Standards and specified in the
Interconnection Service Agreement.
Operating Agreement of the PJM Interconnection, L.L.C., Operating Agreement or PJM
Operating Agreement:
“Operating Agreement of the PJM Interconnection, L.L.C.,” “Operating Agreement” or “PJM
Operating Agreement” shall mean the Amended and Restated Operating Agreement of PJM
Interconnection, L.L.C. dated as of April 1, 1997 and as amended and restated as of June 2,
1997, including all Schedules, Exhibits, Appendices, addenda or supplements hereto, as amended
from time to time thereafter, among the Members of the PJM Interconnection, L.L.C., on file
with the Commission.
Option to Build:
“Option to Build” shall mean the option of the New Service Customer to build certain Customer-
Funded Upgrades, as set forth in, and subject to the terms of, the Construction Service
Agreement.
Part I:
“Part I” shall mean the Tariff Definitions and Common Service Provisions contained in Tariff,
Part I, sections 1 through 12A.
Part II:
“Part II” shall mean Tariff, Part II, sections 13 through 27A pertaining to Point-To-Point
Transmission Service in conjunction with the applicable Common Service Provisions of Tariff,
Part I and appropriate Schedules and Attachments.
Part III:
“Part III” shall mean Tariff, Part III, sections 28 through 35 pertaining to Network Integration
Transmission Service in conjunction with the applicable Common Service Provisions of Tariff,
Part I and appropriate Schedules and Attachments.
Part IV:
“Part IV” shall mean Tariff, Part IV, sections 36 through 112C pertaining to generation or
merchant transmission interconnection to the Transmission System in conjunction with the
applicable Common Service Provisions of Tariff, Part I and appropriate Schedules and
Attachments.
Part VI:
“Part VI” shall mean Tariff, Part VI, sections 200 through 237 pertaining to the queuing, study,
and agreements relating to New Service Requests, and the rights associated with Customer-
Funded Upgrades in conjunction with the applicable Common Service Provisions of Tariff, Part I
and appropriate Schedules and Attachments.
Parties:
“Parties” shall mean the Transmission Provider, as administrator of the Tariff, and the
Transmission Customer receiving service under the Tariff. PJMSettlement shall be the
Counterparty to Transmission Customers.
PJM:
“PJM” shall mean PJM Interconnection, L.L.C., including the Office of the Interconnection as
referenced in the PJM Operating Agreement. When such term is being used in the RAA it shall
also include the PJM Board.
PJM Manuals:
“PJM Manuals” shall mean the instructions, rules, procedures and guidelines established by the
Office of the Interconnection for the operation, planning, and accounting requirements of the
PJM Region and the PJM Interchange Energy Market.
PJM Region:
“PJM Region” shall have the meaning specified in the Operating Agreement.
PJM Tariff, Tariff, O.A.T.T., OATT or PJM Open Access Transmission Tariff:
“PJM Tariff,” “Tariff,” “O.A.T.T.,” “OATT,” or “PJM Open Access Transmission Tariff” shall
mean that certain PJM Open Access Transmission Tariff, including any schedules, appendices or
exhibits attached thereto, on file with FERC and as amended from time to time thereafter.
Point of Interconnection:
“Point of Interconnection” shall mean the point or points where the Customer Interconnection
Facilities interconnect with the Transmission Owner Interconnection Facilities or the
Transmission System.
Project Finance Entity:
“Project Finance Entity” shall mean: (a) a holder, trustee or agent for holders, of any component
of Project Financing; or (b) any purchaser of capacity and/or energy produced by the Customer
Facility to which Interconnection Customer has granted a mortgage or other lien as security for
some or all of Interconnection Customer’s obligations under the corresponding power purchase
agreement.
Transmission Provider associated with interconnecting the Interconnection Customer’s
Generating Facility to Transmission Provider’s Transmission System and enabling that
Transmission System to receive electric energy and capacity from the Generating Facility at the
Point of Interconnection, pursuant to the terms of the Interconnection Service Agreement and, if
applicable, the Tariff.
Queue Position:
“Queue Position” shall mean the priority assigned to an Interconnection Request, a Completed
Application, or an Upgrade Request pursuant to applicable provisions of Tariff, Part VI.
Reasonable Efforts:
“Reasonable Efforts” shall mean, with respect to any action required to be made, attempted, or
taken by an Interconnection Party or by a Construction Party under Tariff, Part IV or Tariff, Part
VI, an Interconnection Service Agreement, or a Construction Service Agreement, such efforts as
are timely and consistent with Good Utility Practice and with efforts that such party would
undertake for the protection of its own interests.
Regional Entity:
“Regional Entity” shall have the same meaning specified in the Operating Agreement.
Regional Transmission Expansion Plan:
“Regional Transmission Expansion Plan” shall mean the plan prepared by the Office of the
Interconnection pursuant to Operating Agreement, Schedule 6 for the enhancement and
expansion of the Transmission System in order to meet the demands for firm transmission
service in the PJM Region.
Reliability Assurance Agreement or PJM Reliability Assurance Agreement:
“Reliability Assurance Agreement” or “PJM Reliability Assurance Agreement” shall mean that
certain Reliability Assurance Agreement Among Load Serving Entities in the PJM Region, on
file with FERC as PJM Interconnection L.L.C. Rate Schedule FERC No. 44, and as amended
from time to time thereafter.
Schedule of Work:
“Schedule of Work” shall mean that schedule attached to the Interconnection Construction
Service Agreement setting forth the timing of work to be performed by the Constructing Entity
pursuant to the Interconnection Construction Service Agreement, based upon the Facilities Study
and subject to modification, as required, in accordance with Transmission Provider’s scope
change process for interconnection projects set forth in the PJM Manuals.
Scope of Work:
“Scope of Work” shall mean that scope of the work attached as a schedule to the Interconnection
Construction Service Agreement and to be performed by the Constructing Entity(ies) pursuant to
the Interconnection Construction Service Agreement, provided that such Scope of Work may be
modified, as required, in accordance with Transmission Provider’s scope change process for
interconnection projects set forth in the PJM Manuals.
Secondary Systems:
“Secondary Systems” shall mean control or power circuits that operate below 600 volts, AC or
DC, including, but not limited to, any hardware, control or protective devices, cables,
conductors, electric raceways, secondary equipment panels, transducers, batteries, chargers, and
voltage and current transformers.
Security:
“Security” shall mean the security provided by the New Service Customer pursuant to Tariff,
section 212.4 or Tariff, Part VI, section 213.4 to secure the New Service Customer’s
responsibility for Costs under the Interconnection Service Agreement or Upgrade Construction
Service Agreement and Tariff, Part VI, section 217.
Service Agreement:
“Service Agreement” shall mean the initial agreement and any amendments or supplements
thereto entered into by the Transmission Customer and the Transmission Provider for service
under the Tariff.
Site:
“Site” shall mean all of the real property, including but not limited to any leased real property
and easements, on which the Customer Facility is situated and/or on which the Customer
Interconnection Facilities are to be located.
State:
“State” shall mean the District of Columbia and any State or Commonwealth of the United
States.
State of Charge:
“State of Charge” shall mean the operating parameter that represents the quantity of physical
energy stored (measured in units of megawatt-hours) in an Energy Storage Resource Model
Participant in proportion to its maximum State of Charge capability. State of Charge is quantified
as defined in the PJM Manuals.
Station Power:
“Station Power” shall mean energy used for operating the electric equipment on the site of a
generation facility located in the PJM Region or for the heating, lighting, air-conditioning and
office equipment needs of buildings on the site of such a generation facility that are used in the
operation, maintenance, or repair of the facility. Station Power does not include any energy (i)
used to power synchronous condensers; (ii) used for pumping at a pumped storage facility; (iii)
used in association with restoration or black start service; or (iv) that is Direct Charging Energy.
Surplus Interconnection Service:
established in an Interconnection Service Agreement, such that if Surplus Interconnection
Service is utilized, the total amount of Interconnection Service at the Point of Interconnection
would remain the same.
Switching and Tagging Rules:
“Switching and Tagging Rules” shall mean the switching and tagging procedures of
Interconnected Transmission Owners and Interconnection Customer as they may be amended
from time to time.
System Impact Study:
“System Impact Study” shall mean an assessment by the Transmission Provider of (i) the
adequacy of the Transmission System to accommodate a Completed Application, an
Interconnection Request or an Upgrade Request, (ii) whether any additional costs may be
incurred in order to provide such transmission service or to accommodate an Interconnection
Request, and (iii) with respect to an Interconnection Request, an estimated date that an
Interconnection Customer’s Customer Facility can be interconnected with the Transmission
System and an estimate of the Interconnection Customer’s cost responsibility for the
interconnection; and (iv) with respect to an Upgrade Request, the estimated cost of the requested
system upgrades or expansion, or of the cost of the system upgrades or expansion, necessary to
provide the requested incremental rights.
System Protection Facilities:
“System Protection Facilities” shall refer to the equipment required to protect (i) the
Transmission System, other delivery systems and/or other generating systems connected to the
Transmission System from faults or other electrical disturbance occurring at or on the Customer
Facility, and (ii) the Customer Facility from faults or other electrical system disturbance
occurring on the Transmission System or on other delivery systems and/or other generating
systems to which the Transmission System is directly or indirectly connected. System Protection
Facilities shall include such protective and regulating devices as are identified in the Applicable
Technical Requirements and Standards or that are required by Applicable Laws and Regulations
or other Applicable Standards, or as are otherwise necessary to protect personnel and equipment
and to minimize deleterious effects to the Transmission System arising from the Customer
Facility.
Transmission Facilities:
“Transmission Facilities” shall have the meaning set forth in the Operating Agreement.
Transmission Injection Rights:
Transmission Injection Rights.
Transmission Interconnection Customer:
“Transmission Interconnection Customer” shall mean an entity that submits an Interconnection
Request to interconnect or add Merchant Transmission Facilities to the Transmission System or
to increase the capacity of Merchant Transmission Facilities interconnected with the
Transmission System in the PJM Region or an entity that submits an Upgrade Request for
Merchant Network Upgrades (including accelerating the construction of any transmission
enhancement or expansion, other than Merchant Transmission Facilities, that is included in the
Regional Transmission Expansion Plan prepared pursuant to Operating Agreement, Schedule 6).
Transmission Owner:
“Transmission Owner” shall mean a Member that owns or leases with rights equivalent to
ownership Transmission Facilities and is a signatory to the PJM Transmission Owners
Agreement. Taking transmission service shall not be sufficient to qualify a Member as a
Transmission Owner.
“Transmission Owner Attachment Facilities” shall mean that portion of the Transmission Owner
Interconnection Facilities comprised of all Attachment Facilities on the Interconnected
Transmission Owner’s side of the Point of Interconnection.
Transmission Owner Interconnection Facilities:
“Transmission Owner Interconnection Facilities” shall mean all Interconnection Facilities that
are not Customer Interconnection Facilities and that, after the transfer under Tariff, Attachment
P, Appendix 2, section 5.5 to the Interconnected Transmission Owner of title to any
Transmission Owner Interconnection Facilities that the Interconnection Customer constructed,
are owned, controlled, operated and maintained by the Interconnected Transmission Owner on
the Interconnected Transmission Owner’s side of the Point of Interconnection identified in
appendices to the Interconnection Service Agreement and to the Interconnection Construction
Service Agreement, including any modifications, additions or upgrades made to such facilities
and equipment, that are necessary to physically and electrically interconnect the Customer
Facility with the Transmission System or interconnected distribution facilities.
Transmission Provider:
The “Transmission Provider” shall be the Office of th